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                   Your Portfolio

Achieving the greatest return for the least amount of risk, relative to your risk profile, is our main objective.  

Helping you construct your portfolio begins with your personal Investment Policy Statement (IPS).  It is the lead document that outlines your portfolio’s investment parameters.  It sets in place the financial guideposts or markers needed in helping you build and manage your portfolio, such as: the investment objectives, the risk tolerance, suitability, the income and liquidity needs, and any restrictions or constraint you may have.  It is reviewed with you annually, or as needed as your personal situation evolves and changes.

There are four main themes in our style:

  • Take on suitable risk
  • Yield, yield, yield
  • Analyze and choose from the best in class
  • Discipline

Taking on the right amount of risk, suitable to your life vision and personal objectives is the single most important aspect in you managing your assets.  Key to that objective is measuring the progress of the portfolio.  This is done by measuring real returns and comparing ‘risk-adjusted returns’; that is to say, comparing your portfolio’s return relative to your risk tolerance.

In keeping with your risk tolerance, the very Centre Core holds the most stable and longest term asset or group of assets. It is the foundation from which your other assets build. Its relative weight to your overall asset base is inversely proportionate to the amount of risk you take on through your other assets. That is, if your risk tolerance is low, the weighting of the Centre Core ought to be high. Ideally, the Centre Core has very low volatility, is not correlated to the stock or bond markets and is tax efficient. It is the stabilizing force in your portfolio in what otherwise can be an uncertain financial marketplace.  Also, it can increase your overall portfolio's return by way of efficient diversification.

The Core of your portfolio is characterized by dividend 'blue chip' stocks, bonds and other high quality fixed income. yield, yield and yield. Helping you build a portfolio with excellent dividend, coupon, and distribution yield is a cornerstone to our growth and income style. Whether the general markets are 'ebbing' or 'flowing', new cash is being paid into your portfolio through interest and dividend payments.  Sustainable yield in a portfolio is also indicative of the portfolio's strength over time.

The Cyclical portion of your portfolio holds positions that are sensitive to market cycles. It carries an increased amount of risk compared to the Core or Centre Core portions of your portfolio.  An oil and gas stock is a typical example of a cyclical position. As its name implies, holding cyclical positions is not constant over time. The amount held should vary as the economy moves through its cycles. 

The Growth portion of your portfolio is higher risk. It lies on the outer limits of the portfolio risk spectrum. Growth positions are usually represented by low, or no dividend yield, higher price earnings and higher volatility. The benefit in owning growth positions is mainly derived from their potential of capital appreciation. In measured doses, the Growth portion can offer ‘efficient diversification' counter to the Centre Core position. 

As an overall portfolio, Centre Core, Core, Cyclical and Growth each play a role in reducing the risk and increasing the return.

The hard assets in the extreme outer ring of the Risk Management map, Cottage, House, and Company Assets are designed to be managed separately from the financial assets you own. These hard assets are less liquid and by definition, riskier. 

There is comfort and peace of mind in knowing that everything we do is disciplined, consistent and has the integrity to stand up to the stringent fiduciary commitment we hold for each one of our clients.    ~ Peter W Bradley

Call 613-755-2061 Ext.224